The Tax Reform Outline for Fiscal Year 2023 has been announced by the ruling party
On December 16, 2022, the Tax Reform Outline for Fiscal Year 2023, presented by the Liberal Democratic Party and Komeito, was announced.
One of the most striking revisions in the outline is the comprehensive expansion and permanent establishment of the preferential tax system for individual investors, known as "NISA."
NISA will now allow for continuous asset accumulation through long-term, systematic, and diversified investments, with the tax-exempt holding period extended indefinitely.
A new "Growth Investment Framework" will be introduced, expanding the annual investment limit from the current 1.2 million yen to 3.6 million yen—three times the original amount.
Additionally, the lifetime tax-exempt limit will be increased from 8 million yen to 18 million yen, which is expected to channel a significant portion of Japan's household savings into securities investments.
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